According to data released by the State Bank of Pakistan (SBP), foreign exchange receipts generated by freelancers in the IT and related sectors surpassed $1 billion mark during the period under review, compared to $708 million recorded in the corresponding period of the previous fiscal year, showing 41% year-on-year growth.
Dr Imran Batada, President of Pakistan Freelancers Association (PAFLA), noted that the budgetary decision to retain Final Tax Regime (FTR) at 0.25% was a good decision by the government to support the freelancing community as they receive earnings after the deduction of commissions and service charges ranging from 25% to 30%.
He also lauded the government for reducing the taxes on foreign transactions through payment cards to facilitate freelancers for making investments in their projects on social media and freelancing platforms.
“PAFLA will continue to stand beside every freelancer in Pakistan - advocating for better policies, more opportunities, and a stronger digital ecosystem, hand in hand with the Ministry of Finance and the Ministry of IT,” he added.
According to estimates, Pakistan is home to nearly three million freelancers, including both full-time and part-time professionals.
PAFLA chairman Ibrahim Amin demanded that the government abolish newly imposed 5% tax on content creators. “They are contributing handsomely to bringing in foreign exchange, particularly YouTubers with informative and knowledge-based channels.”
He urged the government to ensure the availability of high-speed internet and uninterrupted electricity to further enhance the contribution of freelancers to Pakistan’s economy.
According to the SBP, the country also received $533 million through non-IT freelancers during the same period, which enhanced the overall contribution of freelancers to $1.6 billion.